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The dilemma
facing local roads and streets
By Jim Surber
A few months back I wrote a piece about infrastructure challenges, now
being faced by all Americans, concerning roads and bridges. Presently,
those in Washington are debating and avoiding such things as increasing
the national gas tax, and the President’s budget proposal in the
trillions of dollars.
While there are certainly big problems and decisions with federal
highway funding, I want to share some information about the situation
of local roads and bridges, and how they relate to the local taxpayer.
Ohio’s system of roads includes federal highways, principally funded by
the federal government and maintained by the state’s department of
transportation, and state routes that are funded and maintained by the
state government.
All county roads and bridges, and bridges on township roads, are the
responsibility of elected County Commissioners and County Engineers,
and are primarily funded by Ohio taxes on fuel and license plates.
Township roads are the responsibility of the elected Township Trustees,
and are also funded by fuel and license taxes. Finally, the municipal
streets in cities and incorporated villages are the responsibility of
those respective local governments and are mostly funded by the same
state fuel and license taxes.
The federal and state highways are normally considered primary roads,
while county and township roads are considered secondary roads. The
streets in municipalities are the responsibility of that particular
village or city, but those that carry state highways receive partial
additional funding through the state government.
Although the primary funding for local roads and streets is a portion
of the fuel tax and license fees collected by the state and paid each
month to the locals, there are, and have been other funding sources.
Local permissive license fees have been legislated since the late
1960’s, and can be enacted (imposed) by counties, townships, villages
or cities in $5 increments up to $15 per vehicle. Local government
funds which are portions of the Ohio state income tax designated for
local governments also supply road and street funding for townships,
villages and cities. Additionally, the former Ohio estate tax, of which
80 percent of the revenue went to cities and townships, has been an
important funding source for Township Trustees and municipalities for
their roads and streets. Grant funds and loans can be awarded for
specific improvement projects.
During the past three years, Ohio’s governor and legislature have made
major law changes, resulting in decreased funding to Ohio’s local roads
and streets. Cuts of 50 per cent were made in the local government fund
to counties, townships and municipalities, which have lost nearly one
half billion dollars, while the state sales tax rate was increased 0.25
percent. The Ohio estate tax was also eliminated.
This has all happened at a most difficult time for those responsible
for the local roads and streets.
Ohio funding for county roads has increased from 8 to 25 per cent over
the past twenty-five years. During the same time, the cost of road
resurfacing has increased one hundred twenty five per cent, and the
cost of road salt, bridge construction materials, and others have
followed suit. The Ohio fuel tax, last increased by 6 cents per gallon
from 2003-2005, has seen its collection steadily erode due to more
fuel-efficient passenger cars, as well as electric and hybrid vehicles.
The abrupt shift in state funding policy creates a decision point for
anyone remotely concerned with the future conditions of local roads and
streets. The concept of “sharing” state revenue with local governments
began eighty years ago, which was the year after the first Ohio sales
tax was passed in 1934. We are left to wonder if that 1935 promise has
now been stamped with a 2011 expiration date.
If current intentions to further reduce or abolish the state income tax
become reality, the remaining portion of the local government fund will
disappear.
Then it logically follows that if large portions of sales taxes paid by
Ohioans will no longer be shared by the state government, that revenue
must either be replaced, or all locals should be told that they must
now fend for themselves.
Indications are very strong that the latter will eventually happen
since there is no support by either the Governor or Legislature for any
increase in Ohio fuel tax, license fees, or any other source of local
road and street funding.
This leaves those responsible for your local roads and streets with a
tough choice: to either appeal to their constituencies for additional
revenue to be used locally; or to allow the facilities and services to
degrade.
As distasteful and irritating as the thought of increased taxation is
to most people, especially after hikes in the state sales tax and CAUV
(Current Agricultural Use Value) farmland taxes, a dilemma is created:
“Do those responsible for local roads and streets have an obligation to
ask for higher taxes and, if denied, allow the public investment to
suffer; rather than to not ask and allow the same result?”
The parts of road management that are legal obligations, and those
which prevent or decrease potential liability to taxpayers cannot be
ignored. Snow and other obstructions must be removed from public roads
and grass and brush must be controlled, especially at intersections.
Regulatory and warning signs, pavement markings, guardrails and
culverts must be maintained. Bridges must be capable of carrying legal
loads, or else posted with load limits or completely closed to travel.
Severe failure of a road’s surface or any other hazard to the traveling
public must be quickly repaired or eliminated.
Necessary things that could suffer or cease due to insufficient funding
for rural roads are the treatment of icy pavements, periodic road
resurfacing, bridge maintenance and construction, and spot safety
improvements on roads, Different things could be affected on municipal
streets.
Anyone charged with the responsibility of local roads and streets
should be providing information to constituents regarding available
revenues, cost histories of materials, equipment and labor, and exactly
how their funds are being spent. They should also seek input about the
priorities and expectations of the public as we go forward.
Without accurate knowledge, those paying the taxes are never
comfortable paying more, and without a chance to decide, they are never
convinced that a correct decision was made,
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